Ottawa’s push to reverse Nutrien’s decision to build a potash export terminal in Longview, Washington, pits Canada’s critical minerals ambitions against the fertilizer producer’s cost and logistics calculus.
The Saskatoon-based fertilizer producer plans to build a potash export terminal worth up to $1 billion at Berth 4 in Longview, Washington, with annual capacity of five million to six million tonnes. The terminal would give Nutrien another Pacific outlet for Saskatchewan potash aimed at Asian markets, adding to a network that already moves product through North Vancouver, Saint John, and Portland, Oregon.
For Nutrien, the case appears to be less about flag and more about friction. A potash terminal has to solve a basic problem: move heavy bulk material from inland mines to deepwater ships at the lowest possible cost, with the fewest interruptions.
Longview offers Nutrien a practical shortcut. The Washington site already sits inside the Pacific Northwest logistics corridor the company uses through Portland, and Berth 4 gives it a redevelopment opportunity rather than a fully speculative build.
Considering the real challenges posed by the Vancouver corridor—most evident via the port strike in 2023—Ottawa’s tone has shifted from disappointment to damage control. Transport Minister Steven MacKinnon said he has requested a meeting with Nutrien’s project team to “convince them to change their mind” after the company announced plans for an up to $1-billion export terminal with capacity of five to six million tonnes a year at Berth 4 in Longview.
“Saskatchewan potash should be moved out of a Canadian port,” he said, adding, “I’m disappointed at this decision, and we’re hoping to persuade the company to change its mind.”
MacKinnon said he met Nutrien CEO Ken Seitz on Thursday and flagged Ottawa’s willingness to invest in Canadian port infrastructure, particularly at Saint John and the Port of Vancouver, but he did not specify incentives.
The rationale for Nutrien’s move collides with Ottawa’s broader trade and industrial policy goals. Potash is a designated critical mineral and Canada’s fifth-largest export, with Saskatchewan mines providing more than 30% of global production, ahead of any other country. Prime Minister Mark Carney has pledged to double non-US exports from around $300 billion to around $600 billion.
The Longview project has therefore become an early stress test of Carney’s promise to streamline approvals and “get Canada back to building big projects,” especially in critical minerals.
Information for this story was found via The Globe And Mail and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
To the Editor Board:
It seems to me that CEO Mr. Seitz, and all of the members of the Board of Nutrien, should remind themselves that they only have the opportunity to belatedly do right by Saskatchewan and Canada, by exporting from Canada. Had the Government of Canada not blocked the hostile takeover bid for the company (and its resources) by BHP, Mr. Seitz’z and the members of the Board would be doing something, but it would not be running the largest potash producer on the planet. The Board and the Corporation it governs, owes its present existence to that intervention. It has a debt to pay to Canada and the time to pay is now.
Nation building projects envisioned and articulated by the Prime Minister on behalf of the Government of Canada and all Canadians, in response to unprecedented upending (attack ?) on our past relationship with the United States requires not only the leadership of the Prime Minister of Canada and the Premiers of the Canadian provinces but also leadership from the Boards of Directors’ of our leading companies. If that requires some sacrifice from the respective income statements of those companies then that is a price that will have to be paid. Continental, geo-political and global economic change is happening and it is happening with at a pace which demand close attention as the events happening now will reverberate for generations. Our corporate leadership had best be making decisions consistent with not only the interests of the shareholders of the corporation but also the stakeholders of the corporation. Those decisions, on would hope, will be much better atuned to the National moment in which we find ourselves than the shockingly miopic port announcement made by Nutrien’s Board.
Nutrien is must rise to this National moment and reconsider the ill conceived plan to build and export facility in the United States. Failure to do so will be a corporate disgrace that will follow it and its board members for a long, long time.
Regards,
Craig Leggatt
Companies are required to do what is best for shareholders, not for anyone else at the expense of shareholders. Perhaps BC should take a look in the mirror and recognize why the decision was made, and what choices of their own led to this decision. Government policy has impacts. This is one of them.